Once upon a time, you had The Entrepreneur Dream: start with a unique idea, transform it into a business, grow the organization to success, and . . . sell it for big bucks!
Every step was more complicated than you anticipated, but now, you can see the payoff in the future. But even as you approach this milestone, it’s complex.
Your exit plan can, of course, be to simply work hard, sell to the highest bidder, and walk away. But most of the CEOs I talk with want a better legacy for the business, their people, and for themselves.
These leaders want to sustain what they’ve built AND make it attractive to buyers. To take care of their team — the folks who invested and worked to get here — and their customers. And, they also want to enjoy the payday and create a future for themselves after the sale.
These savvy leaders begin exit planning years — not months — before the sale. They are finding that preparing their companies in this way not only takes care of all parties, it results in a better negotiation position and price for their company.
If you aren’t already using LinkedIn to build your brand, begin by downloading my free ebook on why and how to craft a CEO brand on LinkedIn. Skim it because those principles and tips remain true as you anticipate selling a business.
Then, as you begin exit planning, start using LinkedIn to signal that your brand is a good candidate for acquisition. Here’s how to do it.
Distinguish Your Company in the Market
Of course, your company is great and different from your competitors, but can buyers see that?
Alex Nghiem of Exit My SaaS, a business brokerage that specializes in SaaS company exits, offers this advice from his years of helping founders maximize the value of their business for sale, “SaaS companies have to differentiate themselves from other similar businesses. Whatever the product is, I guarantee, there are 10-12 other companies doing something similar.”
Use LinkedIn to set yourself apart from the crowd of competitors:
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- Post regularly, highlight your messaging, and reiterate the solution you provide.
- In positive ways, share what makes your product or service different from other options. “Avoid vague platitudes like, ‘We’re the best’,” advises Nghiem.
- Share case studies of how your team/product served clients.
Pro Tip: Actions speak louder than words, so be sure your team actively engages and supports your user community on LinkedIn. And, Nghiem says it’s a red flag for him when the way a company interacts with customers and the user community doesn’t align with their user claims and brand.
Highlight Your Team Members
Solid exit planning starts a few years before your acquisition, and a key step is branding your team (the folks who will stay post-acquisition). Buyers know that a founder or CEO may stay for a short time to support the transition, but they usually leave after 6-18 months. Will the company succeed without its top leader?
Use LinkedIn to build buyer confidence by showing the success of your company is not solely dependent on you but rather is run by a strong leadership team. As Nghiem says, “Buyers want to see a management team — someone other than the CEO — handling day-to-day operations.”
Branding your team demonstrates continuity, ensures that the company’s identity and vision remain consistent, and reassures stakeholders that the company is in capable hands.
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- Create polished and deep profiles for people in key roles (key senior executives, including the CTO, head of product, lead engineer, and marketing director). Note their role in the company plus their strengths, skills, accomplishments, and expertise.
- Use a company-designed image for the header graphic of the profiles (and your LinkedIn company page) and update everyone’s profile photos with professional headshots. This ensures a professional look and builds momentum.
- Educate your team about the value of LinkedIn and being active on the platform. As your company and senior leaders post and engage, you’ll increase reach and trust across multiple shareholder groups and attract new followers.
Pro Tip: Provide descriptive copy about the company — similar but not identical — for people to use on their profiles. Make sure these are aligned with your business goals, values, and culture.
Showcase Company Growth, Culture & Partnerships
Buyers are interested in companies that have grown and will continue to grow. If you are comfortable sharing stats about your growth, do it. If you aren’t, you can use LinkedIn to demonstrate growth without citing stats:
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- Keep your company page updated with the number of employees and encourage employees to join the platform, connect with the company, and engage with posts.
- Post job openings and welcome new hires. (These need not be paid job notices — simply share positions you’re hiring. You may also win by finding some great candidates.)
A company culture that celebrates its people and their hard work not only builds morale but also signals growth:
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- Post about wins across a wide range of departments.
- Recognize teams and individual employees for good work and longevity with the company.
- Celebrate milestones, accomplishments, and awards.
- Acknowledge your company’s partnerships with celebratory posts.
Pro Tip: If you can’t mention specific partner companies, engage with posts from executives at those companies. The relationship will become visible through the interactions.
Articulate Your Personal Brand
As you plan a strategic exit, you also should think about — and prepare for — your next steps. What do you want to do post-sale? Founders and CEOs are a special kind of person, and they rarely exit to a future of full-time beach life and sipping tropical drinks (though, a little of that sounds good!).
Use LinkedIn to begin setting yourself up for your next venture.
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- Without abandoning your role as leader, begin to separate yourself from the business.
- Continue to interact with industry influencers and participate in relevant discussions.
- Continue to write thought leadership posts and blogs to demonstrate that you remain active and engaged.
Pro Tip: If you want to change industries, start following and engaging with leaders in the new field.
Great Advice from a CEO Who Has Done It
In 2022 Joanna Mirov, founder and former CEO of MXOtech, sold her company to Ntiva and now advises other founders, “It may seem a little daunting, but securing your future starts with simple steps you can begin working on for just a few hours a month.”
As a first step in exit planning, take inventory of where your company stands in these areas. And then, begin strategically investing time and effort into preparing your company, your people, and yourself for a future you can all look forward to.
Leveraging LinkedIn to signal that your company is a prime acquisition target can significantly enhance your negotiation position and ultimately the sale price. By highlighting your team, showcasing your growth and culture, and articulating your personal brand, you are not only making your company attractive to potential buyers but also setting the stage for a smooth transition and a prosperous future.
The path to a successful exit is paved with proactive steps and careful preparation. The earlier you start, the better positioned you will be when the time comes to sell.
Ready to make your business irresistible to buyers? Our team of experts is here to help you craft and implement a comprehensive LinkedIn strategy tailored to your exit plan. We will work with you to highlight your strengths, build confidence in your leadership team, and showcase your company’s unique value proposition. Contact me on LinkedIn or book a quick call.